New-age companies such as Zomato, FSN Ecommerce Venture (Nykaa) and PB Fintech (Paytm), which stormed the capital market recently, are likely to be featured in large-cap category in the new list to be announced in January by the Association of Mutual Funds in India, said Edelweiss Alternative Research. However, according to the domestic brokerage, these shares should sustain their valuations, to enter the elite list.

Despite making a huge loss, these companies made waves in the capital market with bumper listing gains after their initial public offering saw robust responses from investors.

MFs to follow from Feb

As per the SEBI mandate, AMFI has to classify stocks as large, mid and small-caps based on their market capitalisation. Mutual fund equity schemes have to invest based on the AMFI stock classification list released twice a year. AMFI will release an updated stock categorisation list between January 5 and 7 and this will be valid from next February to July-end.

Apart from the new-age companies, Mindtree, SRF, Mphasis, IRCTC, Godrej Properties, Tata Power and PI Industries will be reclassified as large cap from mid-cap stocks while YES Bank, Honeywell Automation, Bank of Baroda, Biocon, Punjab National Bank, Procter and Gamble Hygiene, Colgate-Palmolive, Cholamandalam Investment, Lupin and NMDC will be downgraded to mid-cap from large-cap, according to Edelweiss Alternative Research.

The other new entrants into the mid-cap list would be Clean Science and Tech, Nuvoco Vistas Corporation, Aditya Birla Sun Life AMC, GR Infra Projects and Aptus Value Housing Finance.

Some of the stocks that may be upgraded to mid-cap from small-cap include Happiest Minds Technologies, Central Bank of India, Gujarat Fluorochemicals, National Aluminium, Indian Energy Exchange, KIOCL and Prestige Estates Projects. Jubilant Pharmova, Dhani Services, RBL Bank, City Union Bank, Vaibhav Global, Indigo Paints, Amara Raja Batteries, Affle (India), Suven Pharma, Castrol India, Wabco India, Bank of Maharashtra, Zydus Wellness and Apollo Tyres will move from mid-cap to small-cap.

Abhilash Pagaria, Assistant Vice-President, Edelweiss Financial Services, said the re-categorisation helps to attract inflows in the mid-long term as it leads to more visibility for stocks and fund managers analyse companies’ performance to add them as per their rationale and scheme mandate.

The new debutants into small-cap include Devyani International, Chemplast Sanmar, Glenmark Life Sciences, CarTrade Tech, Vijaya Diagnostic Centre, Tatva Chintan Pharma Chem, FINO Payments Bank, Ami Organics, Sansera Engineering, India Pesticides, Paras Defence and Space Tech, Rolex Rings, Krsnaa Diagnostics, Sigachi Industries, SJS Enterprises, Windlas Biotech, Exxaro Tiles and Meghmani Finechem.

bl17Mcap-1jpg
 

comment COMMENT NOW